All Boeing 737 MAX flights grounded – and travellers could feel it in the hip pocket

With investigations under way into two crashes of Boeing’s 737 MAX 8 aircraft, the US manufacturer has caved to pressure and grounded the entire global fleet totalling 371 planes. That includes both model 8 and 9 versions of the aircraft.

But the impact on passengers and air travel could last for months as airlines try to reschedule flights and seek other aircraft to meet demands. While things are still evolving, what should you anticipate as a traveller?

Everybody down

While it is legitimate for a government to issue regulatory orders to intervene in an airline’s operation due to safety or security concerns, it is unprecedented that such a large number of countries are taking action.

At least 45 International Civil Aviation Organisation member states had already either ordered their airlines to ground 737 MAX aircraft, or suspended entry of such planes into enter their airspaces.

Countries affected include China, Indonesia, Germany, UK, France, the Netherlands, Singapore, Australia, New Zealand, Canada and now the US.

While investigations into the two crashes could last for months or even years before any conclusion is drawn, the length of suspension is also unknown at this stage.

Yet holiday seasons such as Easter and school vacations are approaching, and many of us will no doubt be looking to fly away for a break.

Expect disruption

Airlines face disruption almost every day: airline operation is a complex system. Disruption can be caused by unforeseeable weather conditions, unexpected technical or mechanical issues of an aircraft, or associated safety hazards or security concerns.

Airlines therefore have strategies in place to manage or at least mitigate the effect of the disruption and reduce any potential delays. This could include but is not limited to:

changing or swapping an aircraft type

combining two or three flights into one operation

arranging alternative flights for travellers

moving travellers to other airlines if their tickets have been issued.

With only 371 Boeing 737 MAX family jets in operation, this is a small percentage of the total of more than 6,000 of the previous model and gives airlines the ability to use other jets in their fleet as a replacement.

A snapshot of Boeing 737 models in flight at 7:52am UTC Thursday (6:52pm AEDT) shows 1,500 aircraft. Not a 737 MAX in sight.Courtesy of Flightradar24.com

But the current suspension will present significant challenges for some airlines.

Subject to their fleet size, the scope of their network, and other resources and capacity available, big airlines with multiple types of aircraft in their fleet are more capable of managing such disruption.

For example, Air China, China Eastern, China Southern, American Airlines and Southwest will have more resources to arrange for travellers to fly to their destinations.

In contrast, low-cost or regional carriers will be limited in their capacity to manage the disruption.

For instance, SilkAir and Fiji Airways have six and two Boeing 737 MAX aircraft in their respective fleets. Grounding the model means that both carriers will lose 16% of their total capacity.

Fares could go up

While airlines are making every effort to minimise the disruption, all these arrangements come at a cost.

Airlines might have difficulties in sourcing capacity to replace the aircraft, resulting in inevitable delays or cancellations. And delays and cancellations also result in additional cost to airlines operation.

Travellers could soon see an increase in airfares. The rising fuel cost and shortage of pilots have already put global airlines under pressure to manage operational costs.

Impact on Boeing

Boeing and Airbus are a duopoly, said to dominate 99% of the global large aircraft orders, which make up more than 90% of the total aircraft market.

Over the past few decades, Boeing has weathered problems before and maintained an exceptional reputation for its reliable and efficient aircraft design, manufacturing and service.

While Boeing surely carries enough insurance coverage for losses, it is inevitable the damage to its brand is more far-reaching in the medium to long term. This will affect the confidence of aircraft operators and the general public.

Even if any technical defects discovered are quick to fix, a damaged brand tends to require more time and much more significant efforts to recover.

Is it safe?

Of course there is a question everyone wants answered: is it safe to fly?

The answer is definitely. Statistically speaking, flying on a commercial passenger airliner is the safest mode of transportation.

A recent study of US census data puts the odds of dying as a plane passenger at 1 in 188,364. That compares with odds of 1 in 4,047 for a cyclist, 1 in 1,117 for drowning and 1 in 103 for a car crash.

The most advanced technology used in aircraft design and manufacturing, and in air traffic control management, and the comprehensive, efficient pilot training and management are aimed at a safe flight.

So the decision of Boeing to suspend flights of its 737 MAX aircraft is welcomed, for now. But, pending the findings of the investigations, the questions as to how long the suspension will be in effect and how Boeing will address the issue remain unanswered.